Cleveland-Cliffs CEO Criticizes Industry Minister Over Stelco Sale Comments

Cleveland-Cliffs Inc. chief executive Lourenço Gonçalves accused Industry Minister Mélanie Joly of overstepping her role after she said she was aware of companies interested in buying Stelco Inc. The remarks have heightened tensions between Ottawa and the Ohio-based steelmaker, which acquired Stelco in 2024 and pledged to maintain Canadian employment levels for five years.

Joly has warned that Cleveland-Cliffs could be required to divest Stelco if it is found to have breached its Investment Canada Act undertakings, which include job-preservation commitments. Stelco announced a reduction of up to 500 jobs last month, prompting the minister to note that “publicly traded companies” might be among potential purchasers, though she declined to name them, citing confidentiality.

“It’s not my job to run a public auction of Stelco,” Gonçalves told CBC News, adding that he would eventually sell the company after operating it for a period. “Now that I know I’m persona non grata in Canada, I will do that.”

Cleveland-Cliffs maintains that it is meeting its legal obligations. In a company release, it said it expects to report employment figures that exceed the minimum levels required by the government. Gonçalves described the recent layoffs as temporary and said workers could be recalled if Ottawa negotiates a new trade deal that reduces or eliminates U.S. steel tariffs, which he said have made Stelco’s galvanized business uncompetitive.

United Steelworkers Local 1005 president Ron Wells warned that the government is unlikely to yield to such demands, arguing that doing so could set a risky precedent.

The Globe and Mail’s request for comment from Gonçalves went unanswered.